Credit repair refers to the destructive credit repair process. The general concept is that by
getting a new credit product and consistently meeting your repayments when they are
due, you can rebuild your financial profile. This is the only way to improve your FICO
credit score.
Credit repair is much cheaper than bankruptcy filing, but it takes a lot more work. The
basic premise of credit repair is that if a creditor reports the bad debt on their credit
report, must prove that the debt belongs to you or remove it. To do this, dispute ownership
of each debt with the reporting creditor and the credit bureaus. The credit bureaus will
investigate the debt. If you cannot validate the debt, it vanishes from your credit report.
Depending on the age of the debt, a creditor can sue to recover the balance.
Curriculum
- 1 Section
- 2 Lessons
- 2 Days
- Section 2Good credit can make many financial situations live more accessible and less expensive. For example, with good credit, you can be approved for mortgages or automatic loans and may be entitled to the best interest rates and conditions available. A good credit score can also influence how much you pay the insurance and whether the utility company asks a little or unconnected before starting the service for you. If you make a financial step error in the past, your credit score may not be as high as you want. Even though you won't be able to instantly delete these past negative items from your credit report if they are accurate, you can take steps to rebuild a more positive credit history starting today and increasing your credit in the future.3
